Financial Data and Key Metrics Changes - In Q3 2025, consolidated revenue was NT$59.13 billion, with a gross margin of 29.8% and net income attributable to stockholders of NT$14.98 billion, resulting in earnings per share of NT$1.2 [4][5] - Revenue increased slightly by 0.02% compared to the previous quarter, primarily due to higher wafer shipments, despite a 3% unfavorable impact from the NT dollar exchange rate [5] - Year-over-year, revenue for the first three quarters grew by 2.2% to NT$175.7 billion, while net income per share decreased from NT$3.12 in 2024 to NT$2.54 in 2025 [5][6] Business Line Data and Key Metrics Changes - The communication and computer segments saw an increase in sales mix, while the consumer segment declined by nearly 4 percentage points to 29% in Q3 2025 [7] - The 22-nanometer and 28-nanometer technology nodes remained the main focus, with their combined revenue reaching about 35% [7] - Wafer shipments increased by 3.4% in Q3 2025, driven by demand growth in smartphones and notebooks [9] Market Data and Key Metrics Changes - North America accounted for approximately 25% of total revenue in Q3 2025, up from 20% in the previous quarter, while Asia's share declined to 63% [7] - The company expects wafer shipment growth in the low teens for 2025, supported by differentiated technology offerings [15] Company Strategy and Development Direction - UMC is focusing on enhancing its 22-nanometer technology platform, which is projected to contribute significantly to revenue growth in 2026 [9][15] - The company is expanding its addressable market into advanced packaging and 12-nanometer technology, aligning with customer needs for power efficiency and high bandwidth [17][45] - UMC aims to maintain a balanced capacity split between Taiwan and overseas locations to address geopolitical concerns and supply chain resilience [29] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the business outlook for 2026, despite ongoing global economic uncertainties [15][29] - The company anticipates that the demand for 22-nanometer technology will continue to drive growth, with expectations of double-digit year-over-year growth in 2026 [15][56] - Management highlighted the importance of technology differentiation and customer trust in navigating geopolitical risks [29] Other Important Information - UMC's annual capital expenditure (CapEx) budget is set at NT$1.8 billion, with 90% allocated to 12-inch and 8-inch technologies [8] - The company is actively monitoring supply chain dynamics, particularly concerning rare earth materials and their potential impact on operations [28][38] Q&A Session Summary Question: Near-term outlook and end market trends - Management indicated that Q4 wafer shipments are expected to remain flat, with growth driven by differentiated technology offerings [14][15] Question: Gross margin expectations - Management expects Q4 gross margin to remain in the high 20% range, influenced by depreciation and product mix [20][21] Question: Geopolitical uncertainties and tariffs - Management acknowledged potential risks from tariffs but emphasized a focus on technology differentiation and supply chain resilience [28][29] Question: Pricing trends for 22 and 28-nanometer technologies - Management stated that pricing strategies remain consistent, with a focus on protecting market share [61][62] Question: Update on U.S. collaboration and 12-nanometer technology - The collaboration with Intel is progressing well, with early product takeout expected in 2027 [77][87] Question: Advanced packaging and wafer-to-wafer technology - Management highlighted ongoing development in advanced packaging solutions, with a focus on deep trench capacitors and wafer-to-wafer stacking capabilities [45][92]